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Don't overlook NYSE:ELF—a stock with solid growth prospects and a reasonable valuation.

By Mill Chart

Last update: Nov 9, 2023

Discover ELF BEAUTY INC (NYSE:ELF), an undervalued growth gem identified by our stock screener. NYSE:ELF is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Growth Assessment of NYSE:ELF

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:ELF boasts a 9 out of 10:

  • The Earnings Per Share has grown by an impressive 151.79% over the past year.
  • ELF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.66% yearly.
  • The Revenue has grown by 70.85% in the past year. This is a very strong growth!
  • ELF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.49% yearly.
  • The Earnings Per Share is expected to grow by 33.57% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 30.92% on average over the next years. This is a very strong growth
  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Valuation Insights: NYSE:ELF

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:ELF boasts a 5 out of 10:

  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ELF indicates a somewhat cheap valuation: ELF is cheaper than 66.67% of the companies listed in the same industry.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of ELF may justify a higher PE ratio.
  • ELF's earnings are expected to grow with 33.57% in the coming years. This may justify a more expensive valuation.

Analyzing Health Metrics

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:ELF, the assigned 8 reflects its health status:

  • ELF has an Altman-Z score of 15.35. This indicates that ELF is financially healthy and has little risk of bankruptcy at the moment.
  • ELF has a Altman-Z score of 15.35. This is amongst the best in the industry. ELF outperforms 97.44% of its industry peers.
  • ELF has a debt to FCF ratio of 0.59. This is a very positive value and a sign of high solvency as it would only need 0.59 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.59, ELF belongs to the top of the industry, outperforming 87.18% of the companies in the same industry.
  • A Debt/Equity ratio of 0.11 indicates that ELF is not too dependend on debt financing.
  • With a decent Debt to Equity ratio value of 0.11, ELF is doing good in the industry, outperforming 61.54% of the companies in the same industry.
  • ELF has a Current Ratio of 2.86. This indicates that ELF is financially healthy and has no problem in meeting its short term obligations.
  • ELF's Current ratio of 2.86 is fine compared to the rest of the industry. ELF outperforms 76.92% of its industry peers.
  • ELF has a better Quick ratio (1.89) than 82.05% of its industry peers.

Evaluating Profitability: NYSE:ELF

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ELF has achieved a 8:

  • ELF has a better Return On Assets (16.28%) than 92.31% of its industry peers.
  • ELF's Return On Equity of 23.55% is amongst the best of the industry. ELF outperforms 92.31% of its industry peers.
  • The Return On Invested Capital of ELF (20.18%) is better than 87.18% of its industry peers.
  • The 3 year average ROIC (7.21%) for ELF is below the current ROIC(20.18%), indicating increased profibility in the last year.
  • The Profit Margin of ELF (15.88%) is better than 94.87% of its industry peers.
  • Looking at the Operating Margin, with a value of 17.26%, ELF belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
  • ELF has a better Gross Margin (69.58%) than 76.92% of its industry peers.
  • ELF's Gross Margin has improved in the last couple of years.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of ELF

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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ELF BEAUTY INC

NYSE:ELF (2/21/2024, 7:04:00 PM)

After market: 173.51 +1.18 (+0.68%)

172.33

+0.96 (+0.56%)

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